On 11 June 2025, ASIC refused Bakken Holdings Pty Ltd's (Bakken) application for an Australian credit licence to provide debt management services.
Previously, Bakken was able to operate a debt management service because it had applied for a licence by 30 June 2021, however as a result of the refusal, Bakken is no longer able to rely on the transitional arrangements and must cease engaging in debt management services.
The National Consumer Credit Protection Act 2009 (National Credit Act) prohibits unlicensed entities, such as Bakken, from providing debt management services.
Bakken has the right to appeal to the Administrative Review Tribunal for a review of ASIC's decision.
For credit licensees
ASIC reminds credit licensees that under section 31 of the National Credit Act they are prohibited from conducting business with unlicensed persons.
For consumers
There are free alternatives available to help consumers manage debt. Consumers are able to seek assistance from the National Debt Helpline on 1800 007 007 or a financial counsellor.
Background
From 1 July 2021, providers of debt management services (including firms offering 'debt negotiation' or 'credit repair' services) are regulated under the National Credit Act and are required to obtain an Australian credit licence authorisation to provide a debt management service (see 21-162MR).
Transitional arrangements enabled providers of debt management services to continue to provide these services after 1 July 2021, if they had made an application to ASIC by 30 June 2021 to hold an Australian Credit Licence with a debt management authorisation and the application has not been withdrawn, or otherwise dealt with by ASIC. However, the transitional arrangements cease to apply where an application is withdrawn by the applicant or is dealt with by ASIC.
Separate to this application for an Australian credit licence, ASIC has commenced proceedings against Bakken trading as Solve My Debt Now, for allegedly engaging in unconscionable conduct, making misleading representations and carrying on a financial services business without the appropriate licence (see 23-212MR).
